Federated Investors, Inc. (FII) will pay a special cash dividend of $1 per share, together with its regular quarterly dividend of $0.25.

The dividend, which will be paid from Federated's existing cash balance, is considered an ordinary dividend for tax purposes and consists of a $0.25 quarterly dividend and a $1.00 special dividend. The dividend is payable on Nov. 15, 2016 to shareholders of record as of Nov. 8, 2016.

"The November special dividend payment marks our fourth in eight years and brings the special-dividends total since 2008 to $6.53 per share," said Thomas R. Donahue, chief financial officer. "The special dividend and the new share repurchase program further emphasize Federated's commitment to shareholder value."

The investment manager has a dividend yield of 3.7% based on a $27 stock price. Federated Investors has been paying a $0.25 quarterly dividend since 2013, when the payout was raised by 4.2% from $0.24 quarterly.

Federated Investors, Inc. (Federated) is a provider of investment management products and related financial services. Federated operates through investment management business segment. It is engaged in sponsoring, marketing and providing investment-related services to various investment products, including mutual funds and Separate Accounts, which include separately managed accounts, institutional accounts, sub-advised funds and other managed products.